All advisers will now have to sit the lifetime mortgages examination to work with SHIP, which represents over 90 per cent of the equity release sector. It is hoped that with SHIP members making these qualifications requisite for working with them, more advisers will be encouraged to take specialist examinations for equity release.
SHIP has also announced the introduction of an equity release checklist for advisers. It can be used by advisers to ensure they have covered all appropriate areas when selling equity release products to clients, such as alternatives to equity release, consultation with families and impact on benefits and estate.
Jon King, chairman of SHIP, said: “The challenge is to ensure that standards of advice in the complex and emotive sector of equity release are improved. This decisive step from SHIP members to reject any business, direct or via intermediaries, unless advisers have passed the relevant examinations is a significant step in ensuring this happens.
“We are confident these measures will vastly improve advice standards in equity release, encourage consumer confidence in the industry and ensure its continued growth in the future.”
Dean Mirfin, business development director for Key Retirement Solutions, welcomed the move. He said: “I think this decision has to help the market. We’re well into regulation and there are still a lot of people out there advising who haven’t taken the exam and it’s pretty hard to argue it is an unreasonable decision for SHIP to take. Ultimately, it keeps sight of what’s important: maintaining standards and showing consumers it’s a market that is taken seriously. This is a straightforward start towards that.”
